2,882 trillion won in real estate...Doubles in 10 years

The exposure to real estate finance risks has nearly doubled over the past decade to nearly KRW 29 trillion.

According to the data submitted by Cha Kyu-geun of the Cho Kuk Innovation Party from the Bank of Korea, the exposure to real estate finance risks reached 2,882 trillion won as of the end of the first half of this year.

Real estate financial risk exposure is a concept that includes both household loans such as real estate mortgage loans, corporate loans such as project financing loans, and financial investment products such as real estate funds and REITs.

Recently, the proportion of household loans accounted for 49% of real estate financial risk exposure, and the proportion of real estate mortgage loans among household loans rebounded slightly to 51% at the end of the first half of this year.

Cha pointed out that funds flowing into real estate could lead to a transfer between finance and real estate if real estate prices plunge or the handling agency becomes insolvent, which could increase system risk.